Finding 1175048 (2025-002)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2026-02-23
Audit: 388672
Organization: University of Central Oklahoma (OK)

AI Summary

  • Core Issue: The University did not return funds for three students within the required 45 days after they withdrew from courses.
  • Impacted Requirements: This violates reporting requirements under 34 CFR §668.22, affecting the timely return of disbursements to the U.S. Department of Education.
  • Recommended Follow-Up: Implement stronger controls to ensure all fund returns are made on time, as management acknowledges the need for improvement.

Finding Text

Federal Program – Student Financial Assistance Cluster – Assistance Listing Numbers 84.063 (Federal Pell Grant Program) and 84.268 (Federal Direct Student Loans) – U.S. Department of Education (ED) Program Year 2024-2025 Criteria or Specific Requirement – Reporting – 34 CFR §668.22 Condition – Three students’ disbursements were not returned to ED within 45 days of the University becoming aware that the students had withdrawn from courses. Questioned Costs – N/A Context – Out of a population of 367 students who completely withdrew from courses during the Spring and Fall semesters of the 2025 aid year and received a disbursement during the respective semester(s), 25 were selected for testing. Of those students, three had funds that were returned outside of 45 days from the date the University became aware of the withdrawal. Our sample was not, and was not intended to be, statistically valid. Effect – The University failed to return funds timely, and, as such, ED did not have access to funds. Cause – The University did not have appropriate controls in place to ensure timely return of funds. Identification as a Repeat Finding, if Applicable – N/A Recommendation – The University should ensure the design and appropriate operating effectiveness of controls surrounding return of funds to ensure that all returns are made timely. Views of Responsible Officials and Planned Corrective Actions – Management agrees with the finding.

Corrective Action Plan

Return of Title IV (R2T4) Funds Errors, Reference 2025-002 Audit Finding: Out of a population of 367 students who completely withdrew from courses during the Spring and Fall semesters of the 2025 aid year and received a disbursement during the respective semester(s), 25 were selected for testing. Of those students, three had funds that were returned outside of 45 days from the date the University became aware of the withdrawal. Our sample was not, and was not intended to be, statistically valid. Cause of the Finding: The University did not have appropriate controls in place to ensure timely return of funds, the result of limited staffing within the Financial Aid Office and the absence of a formalized secondary review process. Effect of the Finding: The University failed to return funds timely, and, as such, ED did not have access to funds. Corrective Action Plan: To address the delays identified in the R2T4 funds, the following corrective actions will be taken: 1. Revised Procedures o The University will update its written Return of Title IV procedures to clearly define the identification of official and unofficial withdrawals, required timelines for completing R2T4 calculations, and responsibility for initiating, reviewing, and approving calculations. 2. Training for Staff o Financial Aid staff will receive refresher training on Return of Title IV requirements, including withdrawal determination dates and calculation deadlines. o Training materials will be documented for reference and future onboarding. 3. Secondary Review Process o A secondary review of all R2T4 calculations will now be required prior to posting adjustments and returning funds. o The review will be documented and retained with the student’s financial aid file. 4. Ongoing Monitoring o A withdrawal tracking log will be implemented to monitor the date of withdrawal, the date of R2T4 calculation, and the date funds are returned. o The Senior Director Financial Services and Operations will review the log monthly. 5. Timeline for Implementation o Revised procedures will be updated by the Financial Aid Office staff by June 30, 2026. o Staff training sessions: First session scheduled by June 30, 2026, with periodic refreshers as available. o Secondary review processes and ongoing monitoring will begin immediately. 6. Responsible Parties The Vice President for Enrollment and Student Success, Associate Vice President of Enrollment Management, and the Senior Director Financial Services and Operations will oversee the implementation of the corrective action plan. Responsible party contact information is located at uco.edu.

Categories

Student Financial Aid Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1175045 2025-001
    Material Weakness Repeat
  • 1175046 2025-001
    Material Weakness Repeat
  • 1175047 2025-002
    Material Weakness Repeat
  • 1175049 2025-003
    Material Weakness Repeat
  • 1175050 2025-003
    Material Weakness Repeat
  • 1175051 2025-003
    Material Weakness Repeat
  • 1175052 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $36.23M
84.063 FEDERAL PELL GRANT PROGRAM $26.05M
84.334 GAINING EARLY AWARENESS AND READINESS FOR UNDERGRADUATE PROGRAMS $954,259
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $936,234
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $633,236
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $496,829
84.047 TRIO UPWARD BOUND $443,583
84.066 TRIO EDUCATIONAL OPPORTUNITY CENTERS $375,506
84.044 TRIO TALENT SEARCH $371,712
84.038 FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS $328,530
84.042 TRIO STUDENT SUPPORT SERVICES $299,453
84.217 TRIO MCNAIR POST-BACCALAUREATE ACHIEVEMENT $276,279
84.033 FEDERAL WORK-STUDY PROGRAM $269,220
84.103 TRIO STAFF TRAINING PROGRAM $215,696
93.879 MEDICAL LIBRARY ASSISTANCE $172,433
84.184 SCHOOL SAFELY NATIONAL ACTIVITIES $144,194
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $95,206
20.616 NATIONAL PRIORITY SAFETY PROGRAMS $82,643
93.788 OPIOID STR $70,575
12.420 MILITARY MEDICAL RESEARCH AND DEVELOPMENT $70,146
93.043 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART D, DISEASE PREVENTION AND HEALTH PROMOTION SERVICES $52,205
47.074 BIOLOGICAL SCIENCES $38,721
93.434 EVERY STUDENT SUCCEEDS ACT/PRESCHOOL DEVELOPMENT GRANTS $30,000
10.326 CAPACITY BUILDING FOR NON-LAND GRANT COLLEGES OF AGRICULTURE (NLGCA) $25,741
47.070 COMPUTER AND INFORMATION SCIENCE AND ENGINEERING $21,235
45.025 PROMOTION OF THE ARTS PARTNERSHIP AGREEMENTS $20,000
84.425 EDUCATION STABILIZATION FUND $18,689
47.083 INTEGRATIVE ACTIVITIES $11,753
93.859 BIOMEDICAL RESEARCH AND RESEARCH TRAINING $11,678
16.560 NATIONAL INSTITUTE OF JUSTICE RESEARCH, EVALUATION, AND DEVELOPMENT PROJECT GRANTS $9,780
64.034 VA GRANTS FOR ADAPTIVE SPORTS PROGRAMS FOR DISABLED VETERANS AND DISABLED MEMBERS OF THE ARMED FORCES $8,843
47.084 NSF TECHNOLOGY, INNOVATION, AND PARTNERSHIPS $6,841
19.021 INVESTING IN PEOPLE IN THE MIDDLE EAST AND NORTH AFRICA $2,989
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $579